The Montoyas want to buy a condominium. They estimate that their expenses in the first year will be: mortgage interest, $4,964; real estate taxes, $1,795: insurance, $386; association fees, $840;
depreciation, $1.781; maintenance, $300; utilities, $1.200; and lost income on cash invested, $525.
They also estimate they will save $1.400 in income taxes because of increased tax deductions.
a. What were the total expenses of condo ownership for the first year? b. What was the net cost of
owning the condo in the first year?